Euro 7 Regulations Compliant Market Size & Forecast 2035

Euro 7 Regulations Compliant Market

The Euro 7 regulations compliant market is estimated to grow from 13.6 million units in 2026 to 14.1 million units by 2035 at a CAGR of 0.4% from 2026 to 2035. The market is driven by demand for zero-emission vehicles, reduction of brakes and tires emission in ICE and electric/hybrid vehicles, reduction in tailpipe emissions, and others.

Zero emission targets by 2050

The Euro 7 regulations includes various real driving emissions (RDE), including the emissions from the brakes and tires of ICE and EVs. In-depth emission monitoring from different vehicular systems is required to achieve the agenda. Furthermore, the EU aims to be climate-neutral by 2050, with zero greenhouse gas emissions. Transitioning to this climate-neutral environment is not easy or quick; the Euro 7 regulation can also be considered a step toward achieving the climate-neutral vision.

The Euro 7 targets to lower the emission of particles from the tailpipe by 13% from cars and vans and 39% from buses and lorries by 2035. Furthermore, the particles from cars’ brakes will be lessened by 27%. To achieve such targets, many OEMs are developing advanced emission reduction technologies and powertrains to comply with the Euro 7. For instance, to meet the updated BS6 norms in India, TATA Motors (India) has upgraded its entire range of engines to be RDE compliant. Similarly, many European OEMs are equipping their powertrains to be Euro 7 compliant. These regulations have also compelled automotive OEMs to increase the use of lightweight materials such as light metals, composites, and plastics, which helps increase efficiency and reduce emissions.

Following several limitations on the usage of diesel vehicles in the Netherlands and Belgium, many countries have imposed restrictions on vehicles for their environmental protection. Germany is the only country worldwide that has banned diesel vehicles that are emission standard 4/IV or lower in its Stuttgart city. Many other cities in Germany are expected to implement diesel vehicle bans soon.

With increasingly stringent emission norms and restrictions, automotive OEMs focus more on electric and hybrid vehicles. For instance, Mercedes Benz (Germany) has many upcoming electric vehicles ranges in its EQ models, including the newer versions of its EQS, and EQE offerings. The other leading European carmakers, including Volvo (Sweden), Volkswagen (Germany), and others, are also developing electric vehicles.

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Increased periodic maintenance of vehicles

The Euro 7 regulation mandates emission from tires, brakes, onboard emission monitoring systems, etc. For these reasons, the automakers plan to incorporate an onboard monitoring (OBM) system that can monitor the real-time emissions of the vehicle. This will, in turn, drive the growth of the OBM system market. For instance, many leading companies, including Continental AG (Germany), Borgwarner Inc (US), Siemens (Germany), and others, are developing various onboard diagnostic tools and sensors for emission monitoring and reduction.

According to MarketsandMarkets analysis, the global automotive tire market is projected to grow to USD 113.1 billion by 2025. The Euro 7 mandates the real driving emissions produced from these tires, including the tire and road wear particles (TRWP) created due to the friction between the tires and the road. To minimize these emissions from the tires, many leading tire makers are developing their products with various advanced materials that reduce overall tire emissions. For instance, since 2015, Michelin (France) has lowered around 5% of particle emissions from their tires. Furthermore, Michelin and its partners aim to achieve their objective of 100% sustainable materials by 2050.

Another mandated form of emission in the Euro 7 regulation is the braking system emission of vehicles. When the brake is applied, the frictional force produces heat, emitting small airborne particulate matter from the brake disc and pads. These particles are considered a form of emission, and many leading braking system manufacturers are developing less-emitting products. For instance, in 2020, Brembo (Italy) developed its Greentive brake disc with high-velocity-oxy-fuel (HVOF) technology to reduce the environmental impact by reducing CO2 emission. Similarly, the Euro 7 regulation is expected to drive the growth of emission reduction technologies, sensors, and other associated systems.

Key Market Players

The Euro 7 regulations compliant market is dominated by giants such as Forvia (Germany), Tenneco Inc. (US), Eberspächer (Germany), Johnson Matthey (UK), and Umicore (Belgium).

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